What Do Mortgage Underwriters Look for and What’s Their Process?

Mortgage underwriters play an important role in the homebuying process. Simply put, they are the people who ultimately determine whether you’re approved for a home loan. But their process of granting or denying this go-ahead is much simpler than some might think. Find out how mortgage underwriters reach their decision. Also, learn how they can all but assure your loan approval before you even go house hunting.

The Process

Technically-speaking, mortgage underwriting is not one of the first steps in the homebuying process. In fact, it’s usually one of the last. Before your loan goes to underwriting, you’ll have done all of the following: applied for a pre-approval, talked with a mortgage planner and real estate agent, applied for a loan, made an offer, had a home inspection, signed loan disclosures, and had a home appraisal. Then once all this is done, the formal underwriting process will begin. During this process, the underwriter will carefully review your income, credit, assets, appraisal and any other relevant loan documents. Assuming you’ve met all the requirements for the type of loan you’re seeking, you should survive the underwriting phase and be approved for your loan. But even if you’re not approved, it doesn’t necessarily mean you’ve been outright denied.

In some instances, an underwriter will grant what’s called a conditional approval. Another way of saying this is that you’ve been approved with conditions. In a situation like this, the underwriter is mostly satisfied with what they see; you just need to provide some additional information to gain final approval. The best plan, of course, is to have all your proverbial ducks in a row before your loan goes to underwriting. By doing this, you won’t have to wait any time to receive the final approval you’ll ultimately need to move forward in the process and into your dream home.

Conditional Approval Come Early

At Fairway of the Carolinas, you don’t have to wait until the underwriting phase for your mortgage underwriter to issue you a conditional approval. Instead, it can come before you even go house hunting! Because the market is so competitive now, we realize you need a lender who can provide you with a strong offer that’ll allow you to compete – even against buyers willing to pay cash. Through what we call the Fairway Advantage Pre-Approval, your loan will be submitted to underwriting during the pre-approval process. 

With the Fairway Advantage Pre-Approval, your loan is underwritten except for certain property details (contract, title search and appraisal). This means that when you make an offer, the seller knows the home is all but sold. Most buyers can’t say this, of course. The peace of mind a Fairway Advantage Pre-Approval provides will help calm your nerves while shopping for a home. And you’ll feel confident and secure that your offer is as strong as it can possibly be. In fact, with a Fairway Advantage Pre-Approval, it’s we could even close your loan in as few as seven days from the day you’re pre-approved.

Final Thought

Want to know more about the role of mortgage underwriters or the Fairway Advantage Pre-ApprovalContact a Fairway loan officer today with any questions you have about anything related to the mortgage industry. As always, we’re ready and eager to serve you at your leisure.

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Are you currently working with a Fairway Mortgage Planner?

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